diff --git a/apps/desktop/src/components/shortcut-input.tsx b/apps/desktop/src/components/shortcut-input.tsx
index e537567a..74ebc598 100644
--- a/apps/desktop/src/components/shortcut-input.tsx
+++ b/apps/desktop/src/components/shortcut-input.tsx
@@ -1,9 +1,10 @@
-import React, { useState, useEffect } from "react";
+import { Undo2, X } from "lucide-react";
+import { useEffect, useRef, useState } from "react";
+import { toast } from "sonner";
 import { Button } from "@/components/ui/button";
-import { Pencil, X } from "lucide-react";
 import { TooltipProvider } from "@/components/ui/tooltip";
+import { usePreviousShortcut } from "@/hooks/usePreviousShortcut";
 import { api } from "@/trpc/react";
-import { toast } from "sonner";
 import { getKeyFromKeycode } from "@/utils/keycode-map";
 
 interface ShortcutInputProps {
@@ -11,6 +12,7 @@ interface ShortcutInputProps {
   onChange: (value: number[]) => void;
   isRecordingShortcut?: boolean;
   onRecordingShortcutChange: (recording: boolean) => void;
+  shortcutId: string;
 }
 
 const MODIFIER_KEYS = new Set([
@@ -99,6 +101,7 @@ function RecordingDisplay({
         size="sm"
         className="h-6 w-6 p-0"
         onClick={onCancel}
+        aria-label="Cancel recording"
       >
         <X className="h-3 w-3" />
       </Button>
@@ -109,9 +112,11 @@ function RecordingDisplay({
 function ShortcutDisplay({
   value,
   onEdit,
+  onClear,
 }: {
   value?: number[];
   onEdit: () => void;
+  onClear: () => void;
 }) {
   // Format array as display string (e.g., ["Fn", "Space"] -> "Fn+Space")
   const displayValue = value?.length
@@ -119,7 +124,7 @@ function ShortcutDisplay({
     : undefined;
 
   return (
-    <>
+    <div className="inline-flex items-center gap-2">
       {displayValue && (
         <kbd
           onClick={onEdit}
@@ -132,11 +137,41 @@ function ShortcutDisplay({
         variant="ghost"
         size="sm"
         className="h-6 w-6 p-0"
-        onClick={onEdit}
+        onClick={onClear}
+        aria-label="Clear shortcut"
       >
-        <Pencil className="h-3 w-3" />
+        <X className="h-3 w-3" />
       </Button>
-    </>
+    </div>
+  );
+}
+
+function NoneDisplay({
+  previousKeys,
+  onEdit,
+  onRestore,
+}: {
+  previousKeys?: number[];
+  onEdit: () => void;
+  onRestore: () => void;
+}) {
+  return (
+    <div className="inline-flex items-center gap-2">
+      <Button variant="ghost" size="sm" onClick={onEdit}>
+        Set shortcut...
+      </Button>
+      {previousKeys && previousKeys.length > 0 && (
+        <Button
+          variant="ghost"
+          size="sm"
+          className="h-6 w-6 p-0"
+          onClick={onRestore}
+          aria-label="Restore previous shortcut"
+        >
+          <Undo2 className="h-3 w-3" />
+        </Button>
+      )}
+    </div>
   );
 }
 
@@ -145,11 +180,17 @@ export function ShortcutInput({
   onChange,
   isRecordingShortcut = false,
   onRecordingShortcutChange,
+  shortcutId,
 }: ShortcutInputProps) {
   const [activeKeys, setActiveKeys] = useState<number[]>([]);
+  const activeKeysRef = useRef<number[]>([]);
+  const { previousKeys, savePrevious, clearPrevious } =
+    usePreviousShortcut(shortcutId);
   const setRecordingStateMutation =
     api.settings.setShortcutRecordingState.useMutation();
 
+  const hasShortcut = value && value.length > 0;
+
   const handleStartRecording = () => {
     onRecordingShortcutChange(true);
     setRecordingStateMutation.mutate(true);
@@ -161,23 +202,39 @@ export function ShortcutInput({
     setRecordingStateMutation.mutate(false);
   };
 
+  const handleClearRecording = () => {
+    if (value && value.length > 0) {
+      savePrevious(value);
+    }
+    onChange([]);
+  };
+
+  const handleRestorePrevious = () => {
+    if (previousKeys.length > 0) {
+      onChange(previousKeys);
+      clearPrevious();
+    }
+  };
+
+  // Keep ref in sync with state for use in subscription callback
+  useEffect(() => {
+    activeKeysRef.current = activeKeys;
+  }, [activeKeys]);
+
   // Subscribe to key events when recording
-  // Note: activeKeys closure is fresh on each render because useSubscription
-  // updates its callback reference, so previousKeys correctly captures the
-  // previous state value when onData fires.
   api.settings.activeKeysUpdates.useSubscription(undefined, {
     enabled: isRecordingShortcut,
     onData: (keys: number[]) => {
-      const previousKeys = activeKeys;
+      const prevActiveKeys = activeKeysRef.current;
       setActiveKeys(keys);
 
       // When any key is released, validate the combination
-      if (previousKeys.length > 0 && keys.length < previousKeys.length) {
-        const result = validateShortcutFormat(previousKeys);
+      if (prevActiveKeys.length > 0 && keys.length < prevActiveKeys.length) {
+        const result = validateShortcutFormat(prevActiveKeys);
 
         if (result.valid && result.shortcut) {
-          // Basic format is valid - let parent handle backend validation
           onChange(result.shortcut);
+          clearPrevious();
         } else {
           toast.error(result.error || "Invalid key combination");
         }
@@ -198,6 +255,10 @@ export function ShortcutInput({
     }
   }, [isRecordingShortcut]);
 
+  if (value === undefined) {
+    return null;
+  }
+
   return (
     <TooltipProvider>
       <div className="inline-flex items-center gap-2">
@@ -206,8 +267,18 @@ export function ShortcutInput({
             activeKeys={activeKeys}
             onCancel={handleCancelRecording}
           />
+        ) : hasShortcut ? (
+          <ShortcutDisplay
+            value={value}
+            onEdit={handleStartRecording}
+            onClear={handleClearRecording}
+          />
         ) : (
-          <ShortcutDisplay value={value} onEdit={handleStartRecording} />
+          <NoneDisplay
+            previousKeys={previousKeys}
+            onEdit={handleStartRecording}
+            onRestore={handleRestorePrevious}
+          />
         )}
       </div>
     </TooltipProvider>
diff --git a/apps/desktop/src/hooks/useLocalStorage.ts b/apps/desktop/src/hooks/useLocalStorage.ts
new file mode 100644
index 00000000..47cf2b3b
--- /dev/null
+++ b/apps/desktop/src/hooks/useLocalStorage.ts
@@ -0,0 +1,50 @@
+import { useState, useEffect } from "react";
+
+// Safe localStorage utilities that never throw
+export const safeStorage = {
+  getItem(key: string): string | null {
+    try {
+      return localStorage.getItem(key);
+    } catch {
+      return null;
+    }
+  },
+  setItem(key: string, value: string): boolean {
+    try {
+      localStorage.setItem(key, value);
+      return true;
+    } catch {
+      return false;
+    }
+  },
+  removeItem(key: string): boolean {
+    try {
+      localStorage.removeItem(key);
+      return true;
+    } catch {
+      return false;
+    }
+  },
+};
+
+export function useLocalStorage<T>(
+  key: string,
+  initialValue: T,
+): [T, React.Dispatch<React.SetStateAction<T>>] {
+  const [value, setValue] = useState<T>(() => {
+    const item = safeStorage.getItem(key);
+    if (item === null) return initialValue;
+    try {
+      return JSON.parse(item);
+    } catch {
+      safeStorage.removeItem(key);
+      return initialValue;
+    }
+  });
+
+  useEffect(() => {
+    safeStorage.setItem(key, JSON.stringify(value));
+  }, [key, value]);
+
+  return [value, setValue];
+}
diff --git a/apps/desktop/src/hooks/usePreviousShortcut.ts b/apps/desktop/src/hooks/usePreviousShortcut.ts
new file mode 100644
index 00000000..e422269d
--- /dev/null
+++ b/apps/desktop/src/hooks/usePreviousShortcut.ts
@@ -0,0 +1,37 @@
+import { useCallback } from "react";
+import { useLocalStorage } from "./useLocalStorage";
+
+export function usePreviousShortcut(shortcutId: string) {
+  const storageKey = `previous-shortcut-${shortcutId}`;
+  const [previousKeys, setPreviousKeys] = useLocalStorage<number[]>(
+    storageKey,
+    [],
+  );
+
+  const savePrevious = useCallback(
+    (keys: number[]) => {
+      if (keys.length > 0) {
+        setPreviousKeys(keys);
+      }
+    },
+    [setPreviousKeys],
+  );
+
+  const restorePrevious = useCallback(() => {
+    const keys = previousKeys;
+    setPreviousKeys([]);
+    return keys;
+  }, [previousKeys, setPreviousKeys]);
+
+  const clearPrevious = useCallback(() => {
+    setPreviousKeys([]);
+  }, [setPreviousKeys]);
+
+  return {
+    previousKeys,
+    savePrevious,
+    restorePrevious,
+    clearPrevious,
+    hasPrevious: previousKeys.length > 0,
+  };
+}
diff --git a/apps/desktop/src/renderer/main/pages/settings/shortcuts/index.tsx b/apps/desktop/src/renderer/main/pages/settings/shortcuts/index.tsx
index 4be71fe4..ebe1d7bf 100644
--- a/apps/desktop/src/renderer/main/pages/settings/shortcuts/index.tsx
+++ b/apps/desktop/src/renderer/main/pages/settings/shortcuts/index.tsx
@@ -7,12 +7,14 @@ import { api } from "@/trpc/react";
 import { toast } from "sonner";
 
 export function ShortcutsSettingsPage() {
-  const [pushToTalkShortcut, setPushToTalkShortcut] = useState<number[]>([]);
+  const [pushToTalkShortcut, setPushToTalkShortcut] = useState<
+    number[] | undefined
+  >();
   const [toggleRecordingShortcut, setToggleRecordingShortcut] = useState<
-    number[]
-  >([]);
+    number[] | undefined
+  >();
   const [pasteLastTranscriptShortcut, setPasteLastTranscriptShortcut] =
-    useState<number[]>([]);
+    useState<number[] | undefined>();
   const [recordingShortcut, setRecordingShortcut] = useState<
     "pushToTalk" | "toggleRecording" | "pasteLastTranscript" | null
   >(null);
@@ -113,6 +115,7 @@ export function ShortcutsSettingsPage() {
                     onRecordingShortcutChange={(recording) =>
                       setRecordingShortcut(recording ? "pushToTalk" : null)
                     }
+                    shortcutId="pushToTalk"
                   />
                 </div>
               </div>
@@ -140,6 +143,7 @@ export function ShortcutsSettingsPage() {
                     onRecordingShortcutChange={(recording) =>
                       setRecordingShortcut(recording ? "toggleRecording" : null)
                     }
+                    shortcutId="toggleRecording"
                   />
                 </div>
               </div>
@@ -168,6 +172,7 @@ export function ShortcutsSettingsPage() {
                         recording ? "pasteLastTranscript" : null,
                       )
                     }
+                    shortcutId="pasteLastTranscript"
                   />
                 </div>
               </div>
diff --git a/apps/desktop/src/renderer/onboarding/components/shared/OnboardingShortcutInput.tsx b/apps/desktop/src/renderer/onboarding/components/shared/OnboardingShortcutInput.tsx
index f70e9d08..1e05b8ec 100644
--- a/apps/desktop/src/renderer/onboarding/components/shared/OnboardingShortcutInput.tsx
+++ b/apps/desktop/src/renderer/onboarding/components/shared/OnboardingShortcutInput.tsx
@@ -56,6 +56,7 @@ export function OnboardingShortcutInput() {
           onChange={handleShortcutChange}
           isRecordingShortcut={isRecording}
           onRecordingShortcutChange={setIsRecording}
+          shortcutId="pushToTalk"
         />
       </div>
     </div>
diff --git a/apps/desktop/src/utils/shortcut-validation.ts b/apps/desktop/src/utils/shortcut-validation.ts
index be36e504..d59b9010 100644
--- a/apps/desktop/src/utils/shortcut-validation.ts
+++ b/apps/desktop/src/utils/shortcut-validation.ts
@@ -220,6 +220,11 @@ export function validateShortcutComprehensive(
   const { candidateShortcut, candidateType, shortcutsByType, platform } =
     context;
 
+  // Allow empty shortcut (user intentionally disabling)
+  if (candidateShortcut.length === 0) {
+    return { valid: true };
+  }
+
   const otherShortcuts = Object.entries(shortcutsByType)
     .filter(([shortcutType]) => shortcutType !== candidateType)
     .map(([, shortcutKeys]) => shortcutKeys);